Country reference¶
Quick reference for the 18 Latin American countries with a compliance pack in 4Geeks Payroll.
Countries and currencies¶
The 18 compliance countries are:
Argentina (AR), Bolivia (BO), Brazil (BR), Chile (CL), Colombia (CO), Costa Rica (CR), Dominican Republic (DO), Ecuador (EC), El Salvador (SV), Guatemala (GT), Honduras (HN), Mexico (MX), Nicaragua (NI), Panama (PA), Paraguay (PY), Peru (PE), Uruguay (UY) and Venezuela (VE).
Supported currencies (the commercial LATAM list): ARS, BOB, BRL, CLP, COP, CRC, DOP, GTQ, HNL, MXN, NIO, PAB, PEN, PYG, USD (Ecuador, El Salvador, Panama), UYU and VES.
Each workspace has one compliance country, the one in Settings → Business. Other countries have no compliance pack: the console leaves the country empty and payroll cannot apply rates until you choose a supported country.
Social-security contributions¶
Total rates by country (see Tax & Compliance for the line items, caps and progressive contributions):
| Country | Employee | Employer |
|---|---|---|
| Argentina | 17.00% | 25.11% |
| Bolivia | 11.71% | 6.71% |
| Brazil | 7.5–14% (INSS, progressive) | 35.80% |
| Chile | 20.20% | 10.30% |
| Colombia | 8.00% | 30.02% |
| Costa Rica | 10.83% | 26.83% |
| Dominican Republic | 5.91% | 16.34% |
| Ecuador | 7.20% | 22.48% |
| Guatemala | 4.83% | 14.67% |
| Honduras | 3.50% | 9.50% |
| Mexico | 2.295% | 18.275% |
| Nicaragua | 7.00% | 23.50% |
| Panama | 9.00% | 18.35% |
| Paraguay | 9.00% | 23.80% |
| Peru | 12.50% | 10.15% |
| El Salvador | 10.25% | 9.75% |
| Uruguay | 18.00% | 14.50% |
| Venezuela | 5.50% | 15.00% |
Income tax¶
The console withholds salary income tax from a bundled table for 17 countries (Venezuela is manual). Most countries use the gross minus employee contributions as the base; Costa Rica keeps the gross base. Family amounts can be a tax credit or a deduction from the base. The table only applies when its currency matches the payroll currency, and the company signs it before payment. See Tax & Compliance.
Overtime¶
| Country | Rule |
|---|---|
| Costa Rica, Guatemala, Chile | 1.5× |
| Peru | 1.25× first 2 h/day, 1.35× beyond |
| Mexico | 2× first 9 h/week, 3× beyond |
| Panama | 1.25× day / 1.5× night / 1.75× extension |
| Honduras | 1.25× day / 1.5× night / 1.75× extension |
| Colombia | 1.25× day / 1.75× night |
| Ecuador | 2× weekends/holidays and 00:00–06:00, else 1.5× |
| El Salvador | 2× day / 2.25× night |
| Uruguay | 2× business days / 2.5× Sundays and holidays |
| Paraguay | 1.5× day / 2.6× night |
| Argentina | 1.5× / 2× Sundays, holidays and Saturday after 13:00 |
| Bolivia | 2× |
| Brazil | 1.5× / 2× Sundays and holidays |
| Dominican Republic | 1.35× |
| Nicaragua | 2× |
| Venezuela | 1.5× day / 2× night / 2.5× Sundays and holidays |
| Other | 1.5× |
Night differentials¶
| Country | Rate | Applies to |
|---|---|---|
| Costa Rica | 15% | All |
| Mexico | 25% | All |
| Panama | 25% | All |
| Colombia | 35% / 75% | Regular / Overtime |
| Ecuador | 25% | All |
| Honduras | 25% | All |
| El Salvador | 50% | Overtime |
| Guatemala | 50% | All |
| Uruguay | 25% | All |
| Paraguay | 50% | Overtime |
| Chile | 50% | Overtime |
| Peru | 35% / 50% | All / Overtime |
Vacation days¶
| Country | Annual days |
|---|---|
| Costa Rica | 15 |
| Mexico | 12 → 32 (by years of service) |
| Panama | 30 |
| Colombia | 15 |
| Ecuador | 15 |
| Honduras | 10 |
| El Salvador | 15 |
| Guatemala | 15 |
| Uruguay | 20 |
| Paraguay | 30 |
| Chile | 15 |
| Peru | 30 |
| Argentina | 14 → 35 (by years of service) |
| Bolivia | 15 → 30 (by years of service) |
| Brazil | 30 |
| Dominican Republic | 14 / 18 (by years of service) |
| Nicaragua | 15 |
| Venezuela | 15 → 30 (by years of service) |
Aguinaldo¶
| Country | Name | Benefit year |
|---|---|---|
| Costa Rica | Aguinaldo | Dec 1 → Nov 30 |
| Mexico | Aguinaldo | Dec 1 → Nov 30 |
| Panama | Décimo Tercer Mes | Dec 1 → Nov 30 |
| Colombia | Prima de Servicios | Oct 1 → Sep 30 |
| Ecuador | Décimo Tercer Mes | Dec 1 → Nov 30 |
| Honduras | Bonificación Decimotercera | Dec 1 → Nov 30 |
| El Salvador | Aguinaldo | Dec 1 → Nov 30 |
| Guatemala | Aguinaldo | Dec 1 → Nov 30 |
| Uruguay | Aguinaldo | Dec 1 → Nov 30 |
| Paraguay | Aguinaldo | Dec 1 → Nov 30 |
| Chile | Gratificación Legal | Dec 1 → Nov 30 |
| Peru | Gratificación | Dec 1 → Nov 30 |
| Argentina | SAC (Sueldo Anual Complementario) | Manual (two semester payments) |
| Bolivia | Aguinaldo | Jan 1 → Dec 31 |
| Brazil | 13º Salário | Jan 1 → Dec 31 |
| Dominican Republic | Regalía Pascual | Jan 1 → Dec 31 |
| Nicaragua | Aguinaldo | Jan 1 → Dec 31 |
| Venezuela | Utilidades | Manual |
Severance¶
Severance is calculated by the termination engine for the 18 compliance countries. Terminations with just cause and voluntary resignations do not generate statutory severance; the amount depends on the country’s formula (for example, Costa Rica uses one month of salary per year of service up to a cap; Mexico uses three months of integrated salary plus 20 days per year and a seniority premium; Peru uses 1.5 months per year). The termination modal always shows the itemized preview before you confirm.
Related¶
Still have questions? Ask on Discord or explore the tutorials.